Income tax is part of the direct tax which is paid on the Total Income of the Previous Year of every person. In India Income Tax plays an important role in the revenue system of the economy. It is because of two reasons, firstly it is a flexible source of revenue to the Government of India and secondly, it can be helpful in bringing the equal status of the society(since there is a progressive system of tax in India).In this post, we will explain you the Components of Income TaxSEE DETAILS

Before discussing the Direct Taxes & Indirect Taxes in India, let us first understand what is the meaning of tax. What is a Tax?A tax may be defined as a “pecuniary burden laid upon individuals or property owners to support the government, a payment exacted by legislative authority. In simple words, the tax is nothing but money that people have to pay to the government, which is used to provide public services.Taxes are broadly classified into 2  Types-1. Direct Taxes 2. Indirect taxesWhat is Direct Taxes?A direct tax is a kind of charge,SEE DETAILS